![]() For secured loans you’ll need to put up some security against the loan, typically in the form of property or business assets. ![]() Have a growth plan, or potentially offer security (personal or business assets).Most lenders will also apply a minimum level of business income/turnover.Be a UK registered business trading for at least two years (some lenders may consider businesses that have been trading for a shorter time).To apply for a business loan you’re likely to have to meet the following basic criteria: What do I need to be eligible for a business loan? Think carefully about borrowing more if your business has had debt or repayment problems in the past as a new loan could cause further issues for your businesses finances. Loans for bad credit tend to be smaller, on average, as a way of limiting the risk to the lender. You also may have to scale back the amount you want to borrow. But borrowers must expect to pay more for the loan as interest rates can be high. There are specialist lenders for bad credit business loans who may be willing to lend where mainstream or high street banks won’t. Minimum annual turnover: £100,000 Specialist lenders for bad credit If the business, or one of the owners or directors, has an existing loan in default or there has been a recent bankruptcy, this will usually mean any application for credit is rejected.īut if a mainstream lender, such as a high street bank, is unable to offer you a loan, it may signpost you to other specialist lenders where you may be able to help. ![]() Your personal credit history and credit score is also likely to be taken into account. In this case you’re likely to be asked to provide more financial information about your business to the loan underwriters. If the credit issues are minor or marginal (historic debt issues or a small county court judgement, known as a CCJ), for example, then the decision might be referred for a more in-depth assessment by the lender. But whether or not you’ll be accepted for a loan will depend on a range of factors. Or perhaps your business is relatively new and hasn’t had time to build up a credit history. It may still be possible to borrow a loan for your business even if you have bad credit. Can I get a business loan if I have bad credit? Our guide explains what to expect if you’re looking for a business loan with bad credit. But it doesn’t always mean it’s impossible. If you or your business has missed payments or had debt problems in the past and your credit score is low, it is likely to be more challenging to get a business loan. Can You Get A Business Loan With Bad Credit? You should always check with the product provider to ensure that information provided is the most up to date. ![]() While we work hard to provide accurate and up to date information at the time of publication that we think you will find relevant, Forbes Advisor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Forbes Advisor. These “affiliate links” may generate income for our site when you click on them. Second, we also include links to advertisers’ offers in some of our articles. ![]() This site does not include all companies or products available within the market. The payments we receive for those placements affects how and where advertisers’ offers appear on the site. This comes from two main sources.įirst, we provide paid placements to advertisers to present their offers. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive payment from the companies that advertise on the Forbes Advisor site. The Forbes Advisor editorial team is independent and objective. ![]()
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